Skanska posts 4% revenue rise

STOCKHOLM (MarketWatch) -- Swedish construction company Skanska AB (SKA-B.SK) Thursday reported a 4% revenue increase on year in the third quarter, but warned that projects in the U.S. energy sector may be delayed by the political situation in the country, which is causing a more cautious attitude among some private clients.

MAIN FACTS:

-Construction order bookings increased to SEK30.5 billion from SEK26.5 billion in the year-ago period.

-Revenue was SEK34.82 billion, up from SEK33.34 billion in the year-ago period and slightly above the average estimate of SEK34.77 billion in a Dow Jones/Factset survey of 8 analysts.

-Operating profit was SEK1.47 billion, up from SEK1.42 billion, but lower than expectations for SEK1.60 billion.

-IFRS net profit was SEK1.04 billion, down from SEK1.14 billion.

Order bookings were 3% lower than revenue during the last 12 months.

-Skanska said the Swedish residential market has improved, while the Norwegian market has leveled off.

-"In the overall U.S. infrastructure market, private energy related projects in the industrial sector experience delays. The market for large and complex civil construction projects continues however to develop favorably but competition is intense," Skanska said.

-Revenue and operating profit are based on Skanska's reporting method, which recognizes revenue and gross income from property sales after binding agreements have been signed.

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